2014 (9) TMI 1095

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....on 4.8.2006 to 6.8.2006 by the Income Tax Department. The department seized several documents. After scrutiny, department came to the conclusion that the petitioner did not pay correct tax for the years 2001-02 to 06-07. The petitioner filed return on 14.5.2007 and the department proceeded against the petitioner for assessment of income. The petitioner filed an application on 28.5.2007 before the Settlement Commission under section 245(C) of the Income Tax Act for settlement. The Commission passed the order on 31.3.2008. Certain reliefs were granted to the petitioner and Commission granted immunity from penalty and prosecution in respect of income disclosed before the Settlement Commission under direct taxes Act. The Commission further gran....

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....ed date in the present case is 16.9.2009 when the Division Bench passed the order and permitted the revenue to continue the assessment proceedings, hence, notices issued by the department from the aforesaid date are within limitation. 6. The question for consideration before this court in this writ petition is that what is the specified date as defined and provided under Section 245HA of the Income Tax Act. 7. In the present case, the Settlement Commission passed the order on 31.3.2008. By the aforesaid order, the Commission has held that the revenue can continue the verification, however, it granted immunity to the petitioner from penalty and prosecution. 8. The petitioner filed return on 14.5.2007. Limitation for completing the assessm....

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.... such circumstances in accordance with Sub section 4A of Section 245D of the Income Tax Act the specified date would be 31.3.2008 and if the period from 28.5.2007 to 31.3.2008 be excluded, which comes to 10 months and three days, then the assessment has to be completed up to 31.10.2009. 11. The Division Bench granted liberty to the department in the writ appeal to conclude the assessment vide order dt.16th Sept. 2009. It means the assessment had to be completed up to 31.10.2009. 12. Hon'ble Supreme Court in Hope Textiles Ltd. Vs. Union of India reported in 1995 Supp (3) SCC 199 held that a direction can not be issued by the court to a statutory authority to act contrary to statutory provision and the assessing officer is bound to comp....